Withdrawal of cash from ATMs is going to be more expensive from the year 2022. From next month onwards, ATM users will have to pay more charges if the free ATM transaction limit is exceeded. Axis Bank said that as per the guidelines of the Reserve Bank (RBI), the fee for financial transactions over and above the free limit at ATMs of Axis Bank or other banks will be Rs 21 plus GST. These revised rates will be effective from January 1, 2022.
Till now, customers have to pay a charge of Rs 20 for crossing the monthly limit of free transactions. At the same time, from next month, Rs 21 per transaction plus GST will have to be paid. The RBI has made a general increase in costs under a circular to compensate banks for higher interchange fees. Therefore, banks have been allowed to increase the charge to Rs 21 per transaction.
Customers have been allowed to do 3 free transactions from ATMs of other banks in metro cities and 5 transactions at non-metro centres. This will include financial and non-financial transactions.
Apart from this, RBI has also approved to increase the interchange fee per transaction. The fee for financial transactions has been increased from Rs 15 to Rs 17. The interchange fee has been increased from Rs 5 to Rs 6 for non-financial transactions. It is effective from 1st August 2021.
